I should have said that your CD would probably pay less interest after it matures and is renewed at JPMorgan.

The money market fund pays variable rates, so watch to see the extent of any changes. But your deposits are safe now–much safer at JPMorgan than at WaMu–that’s for sure!

I think that your CD and money market account will be transferred to JPMorgan Chase and you’ll be their customer now.

No problem, but I’d guess that if your CD is paying a high interest rate because WaMu had to pay more to attract deposits, the rate will be less from JPMorgan.

I don’t think you have anything to worry about at all. As for WaMu shareholders, WHOO HOO–BOO HOO!

my estimation is that if wamu remains at or above $2, it is still viable. If wamu succeeds at remaining above $2 by the week’s end, i think it is healthy enough to weather on its own, although i would like to see someone buy it for $8/share with share value traded around $3 for stock swap to new owner stock. with what the analysis is saying, wamu should have tanked a while ago, yet it is resilient. i think s&p’s assessment that it remains capitalized is a good indicator although they have been downgraded to junk. not worried about being junk status. i remember in the 80s junk status was the bomb (ooh, does anyone say it’s the bomb anymore?).

If the government bails out sloppily managed banks, it creates a “moral hazard” that could result in future bad bank management; however, a bailout is better than an event that causes a massive run on banks or other shock to our financial system. That kind of situation is VERY unlikely.

Depositors whose accounts are insured by the FDIC will endure NO LOSS–it’s the shareholders who have already been stung by bank stock prices that have fallen precipitously in recent months. If you’re not a stockholder, don’t worry.

IndyMac Federal suspended all foreclosure proceedings, giving those homeowners in trouble at least several more months to live in their homes.

As far as WaMu using inflated interest rates to attract capital, I believe you are confusing capital with liquidity. WaMu may be attempting to lock up some cash at a year or longer term to ensure it has sufficient liquidity to meet potential customer demands for withdrawals from other accounts, and may feel this additional liquidity will help it to weather a small bank panic, however it does nothing to address the capital deficiency in the institution. The capital situation of the bank currently appears to be sufficient, both in terms of the bank’s tier 1 and tier 2 capital. However, if additional write downs of loans are required in the near term this would diminish the bank’s loan loss reserves, diminishing the equity on the bank’s balance sheet and potentially ultimately leaving it with too low a tier 1 and/or tier 2 capital ratio. This could then trigger the regulators to step in and close the institutions as it would no longer be financially sound.

With regards to the comment that WaMu may be too big for the FDIC to handle in the event of a failure, that would most certainly be true in the short term, with the Department of the Treasury needing to step up to provide liquidity to the FDIC to meet the immediate needs in covering insured deposits. Long term this may not be the case, as the FDIC would recover some of the cost of covering these deposits through the sale of WaMu’s assets. If it had sufficient assets, both in terms of performing loans, branches, and customers, the recovery could be sufficient enough to allow the FDIC to absorb this potential failure.

Ridiculous. They’re hosed.

You’ll still owe whatever lender carries your loan, so don’t expect any favors from anybody.

I hope all works out favorably for you, of course.

So, Providian nearly crashed from sub-prime, and now Wamu is going down the same path.

Moral: Don’t make stupid loans to slobs and creeps!

If you are a bettin’ man, note that their stock’s trading at less than $3. It was ~$40 a year ago. Buy low, sell high? Will it be around in 6 weeks TO sell? Time will tell.